Post on 08-Apr-2018
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Arin GharibianGenevieve DeLong
Mark Atia
Maxim LevkovPhyllis Park
Vadim Kornilov
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G o o g l e s H i s t o r y C o m p a n y
B a c k g r o u n d
P o l i t i c a l / L e g a lS o c i a l / C u l t u r a lD e m o g r a p h i c
T e c h n o l o g i c a lE c o n o m i c
M a c r o -E n v i r o n m e n t
F o r c e s
P r o d u c tP r i c eP r o m o t i o nP l a c e
M a r k e t i n gS t r a t e g y
G o o g l e F o r T h e F u t u r eC o n c l u s i o n
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Political /Legal
Social /Cultural
DemographicTechnological
Economic
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GOOGLE, INC.I think Google should be like a Swiss Army knife: clean,
simple, the tool you want to take everywhere
- Marissa Mayer, Vice President of Search Products andUser Experience at Google*
*Adapted from, The Google Way by Bernard Girard
P o l i t i c a l / L e g a l
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Political (e.g. posting of falsified information,solicitation of votes, public opinion)
Policy (e.g. access to information)
Social (e.g. children's use)
Legal (e.g. copyright, intellectual property)
Technical (e.g. security, privacy)
P o l i t i c a l / L e g a l
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P o l i t i c a l / L e g a l
Net neutrality, private enterprises' act against government's attempt to impose controlover various aspects Internet information 'highway'.
Solicitation of votes
Proliferation of information
Purposeful dissemination of falsified information
Open information banks, such as Wikipedia and Wikileaks are regarded as sources ofauthorative and credible detail, despite lack of accuracy and conformity.
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P o l i t i c a l / L e g a l
Digitization unleashes availability of information to the public withlittle to no control from the owner.
Convergence of Internet to the public good in early 1990's wasintended to fundamentally remove it from the governmental funding
into private sector to allow it stand on its own feet.
Free for all, does not mean free of all laws
Google and the Internet takes the industry by the storm andthreatens the very fundamentals of copyright and intellectual
property laws.
Threats on laws that are enacted to protect against intrusion onprivacy and security.
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P o l i t i c a l / L e g a l
Massive digitization of books with little to no regard to the copyright aspect of works and inconsequence redefining the copyright laws.
Guarding against individual privacy, yet releasing products that expose privacy in direct violation ofprivacy laws. Google Buzz, Google Maps, and other simular products.
Youtube video enables availability of media to masses in controversial political situations, while settingagenda for the rest of the broadcast media. Such as acts of war-in the middle east or nature-in thepacific rim, by being immediately available for consumption. Thus making broadcast media difficult tohide truth and adding accuracy prospective to the disseminated information.
Further expansion of Internet, puts Google at the burden of compliance to variety of complicatedpolitical and legal matters.
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P o l i t i c a l / L e g a l
Sensitivity to the laws of copyright ininternational market place. Some countries
prohibit explicit availability of intellectualproperty or copyrighted works to the publicor commercial use without owner'spermission. Thus, pushing Google into lawsuits.
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S o c i a l / C u l t u r a l
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D e m o g r a p h i c
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T e c h n o l o g i c a l
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E c o n o m i c
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Considering that Google is most closelyrelated to the online advertising industry withtheir AdSense and AdWords programs, we will
now consider how this industry is influenced bycurrent economic trends and market dynamics.
Advertising revenues made up 99% of our revenues in 2006 and 2007and 97% of our revenues in 2008. We derive most of our additionalrevenues from offering internet ad serving and management services toadvertisers and ad agencies, the license of our web search technologyand the license of our search solutions to enterprises.2 -Google
E c o n o m i c
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These major economic trends display that right now is not the best time formost industries, but the online search engine and advertising industries aredoing better than most, and so is Google...
Unemployment is upand steady at around
10%
Overall consumption is down for
the past 3 years and falling!
This data was taken from another great tool that Google offers forfree: http://www.google.com/trends1
E c o n o m i c
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Google Stocks andfinancials are growing
through the economiccrisis!
Online advertising trendsare steady with slightdecreases from othercompetitors while Googleis gaining the competitive
edge!
The online advertising trends and Google on the other hand are doing very well witheither steady progression or growth through the economic downturn!
Proving that the current economic trends are not affecting Google
or the online advertising industry.
E c o n o m i c
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We consider that almost all the services that Google offers including the free
software and tools as well as the revenue bearing advertising programs canbe classified as having inelastic demand patterns.
The highly innovative softwarethat Google offers to their
users are not only of the latesttechnology, highly effective,and very useful, but mostimportantly they are free!
Google now controls 69% ofonline advertising market after
acquiring DoubleClick.
Considering that Googlesshare of the online advertising
market is so high and theydont seem to want to stopexpanding, people will be
willing to pay top dollar for thehighly technological ad
targeting that Google offers,
which in most cases turns intosales for most advertisers!
Even though Google hasmajor competitors, with theirhigh expansion and growthrates they are positioning
themselves to transition froman oligopoly to a monopolistic
leader of the online search
engine and advertising market!
E c o n o m i c
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P d
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Product
Simple, fast, & intuitive
Receives several hundredmillion queries each daythrough its search engine
Most used search enginein the world
P d t
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Product
Google vs. Bing
Similar product Easy user interface Use comparable algorithms
Google vs. Yahoo
Yahoo restructured website image
after Google dominated searchengine market share.
Transitioned to a social media newswebsite
P d t
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Googles main advertising productand main source of revenue
PPC Pay Per Click
Total advertising revenues were $28billion in 2010
Product
P d t
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Google Health
Google Finance
Google Mobile
Google Cloud
Google Documents
Product
Google wants to be every part of yourdigital life.
P i
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Price
P ti
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Promotion
Sales and marketing expense were around $2 billion in 2008, which wasapproximately 9% of total revenues.2
Sales and marketing expenses which include customer handling, sales, andsupport are growing as Google expands into markets all over the world.
$266.4 million was spent specifically on advertising and promotion which isonly about 1% of total revenues in 2008!2
Google focuses mostly on its brand status, free products, and word of mouthadvertising.
Some of the advertising dollars are spent on the promotion of Adwords andother products to online businesses looking to advertise.
Promotion
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Promotion
The Current and forecasted macro environmental forces willnot considerably affect Googles promotional strategies.
Google is currently putting a lot of focus on global expansion.
It is important for Google to continue growing its own recognition and dominance inother countries.
Google has to be very careful with certain political and social differences that they aresure to encounter in many countries all over the world.
If they keep up with their level of innovation, technological forces will always besomething that they have under control.
Unless online advertisers find a better way to advertise than online, Google shouldkeep its dominant status in the field of online search engine and advertising products.
Place
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Place
Conclusion
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Conclusion